Florida Bank Levy Checklist
State enforcement action is a serious step Florida takes when a taxpayer owes back taxes and has not responded to earlier collection notices. A bank levy is one of the most direct enforcement tools, allowing the Florida Department of Revenue to seize funds directly from a taxpayer's bank account to satisfy an unpaid tax debt.
This action can affect your ability to access your money and pay regular bills.
Understanding what a bank levy is, how it works, and what steps to take when it happens is critical.
Ignoring an enforcement action does not make it stop. It typically leads to additional collection efforts, interest, penalties, and further financial consequences. Bank levies are a late-stage collection tool, meaning they are implemented after earlier attempts to resolve the debt have been unsuccessful.
What This Issue Means
A bank levy is a legal action that allows the Florida Department of Revenue to take money directly from your bank account to pay a tax debt. When the state issues a levy, it contacts your bank and instructs the bank to freeze and release your account funds to satisfy what you owe in unpaid state taxes.
However, it is essential to understand that Florida uses a two-stage process. First, the
Department issues a garnishment notice that freezes your account for up to 60 days.
During the last 30 days of those 60 days, the Department may issue a notice of levy actually to seize and transfer the funds.
The freeze applies to funds in the account at the time the bank receives the freeze
notice. This differs from a wage garnishment (which deducts money from paychecks) or
a lien (which places a claim against your property).
Why the State Issued This or Requires This
Florida issues a bank levy when a taxpayer has an outstanding tax debt and previous collection efforts have been unsuccessful in resolving it. Typical situations include unpaid sales and use tax, corporate income tax (Florida has a 5.5% corporate income tax rate), reemployment tax (also known as unemployment tax), documentary stamp tax, or other state business tax obligations.
Note that Florida does not have a personal income tax, so bank levies related to state taxes involve business-related taxes, not personal income tax.
The state typically sends earlier notices (such as a notice of assessment or notice of delinquency), allowing taxpayers to pay, set up a payment plan, or dispute the debt. If those notices go unanswered or the debt remains unpaid after deadlines pass, the
Department of Revenue may proceed to freeze and levy assets.
Before a levy can be issued, Florida law requires at least 30 days' advance notice of intent to levy. The taxpayer has 21 days to contest the notice in circuit court or through administrative proceedings. Only after these notice periods can the actual levy occur.
The state uses enforcement tools, such as bank levies, to collect revenue owed under tax law. This is a standard administrative procedure outlined in Florida Statutes and
Department of Revenue regulations.
What Happens If This Is Ignored
If a bank freeze has been issued and you do not take action, the Department will proceed to levy the account during the last 30 days of the 60-day freeze period. Once funds are seized and transferred to the state, recovering them is extremely difficult unless you can prove the levy was issued in error.
The state may continue collection efforts through additional levies on other bank accounts, wage garnishment, or claims against other assets. Interest continues to accrue on the unpaid balance. The debt may grow further with additional penalties.
If the debt remains unpaid for 90 days, the Department will charge a 10% administrative collection processing fee to cover the costs of collecting the debt. Without action to address the underlying tax debt, the state's collection efforts typically intensify.
Ignoring enforcement can also impact your credit report and may result in other consequences, as determined by state law, including the revocation of sales tax registration or professional licenses.
What This Does NOT Mean
A bank freeze or levy does not mean you have lost all legal rights or cannot address the situation. It does not automatically mean criminal charges will be filed (tax collection is a civil matter).
The freeze does not mean all your money is gone forever. During the freeze period
(before the levy is executed), you have opportunities to negotiate payment plans, dispute the debt, or seek hardship relief.
A levy also does not mean you cannot contact the Department of Revenue to discuss options. Even after a freeze has been issued, administrative steps are available to
address the situation, although the process may differ from what it would have been before enforcement.
Checklist: What to Do After Receiving Notice of a Bank
Freeze or Levy
Step 1: Gather Your Documents
Locate any notices or letters from the Florida Department of Revenue related to this tax debt. Find copies of your tax returns for the years in question (if filed). Collect any correspondence with the state about this debt, including payment requests or notices.
Locate bank statements showing the account that was frozen. Keep records of any payments already made toward this debt.
Step 2: Verify the Freeze Is Legitimate
Contact your bank directly using the phone number on your bank card or statement (not a number in any notice). Ask the bank if a freeze has been placed on your account and request details. Ask the bank for the name and contact information of the agency that issued the freeze. Request written confirmation from the bank regarding the funds that were frozen and when they were frozen. Confirm that the freeze came from the Florida
Department of Revenue (not a private debt collector or court judgment).
Step 3: Review the Amount and Account Information
Check the bank's documentation to confirm that the account number frozen matches an account in your name. Verify the amount frozen against any notices you received about the total debt owed. Note the date the bank received the freeze. Determine whether the frozen amount matches the debt or if multiple accounts were frozen for more than what is owed. Ask your bank about the timeline for converting the freeze into a levy.
Step 4: Locate Your Notice of Tax Debt or Assessment
Search through your mail and email for notices from the Florida Department of
Revenue. Look for documents titled "Notice of Assessment," "Notice of Delinquency," "Notice of Amount Due," "Notice of Intent to Levy," or similar language. Note any deadlines mentioned in the notices. Write down the tax year(s) and type of tax listed
(sales tax, corporate tax, reemployment tax, etc.). Record any case number or identification number shown on the notice.
Step 5: Contact the Florida Department of Revenue Immediately
Call the Department of Revenue at the number listed on your notice or visit the official website. Identify yourself and provide your Social Security Number or Federal Employer
Identification Number (FEIN) if you are a business. Ask to speak with a representative about the bank freeze and the underlying tax debt.
Request information about the total amount owed, which tax years are involved, and any interest or penalties included. Ask whether additional collection action is planned—request written documentation of the debt amount and a breakdown of taxes, interest, and penalties. Request a ZT09 report, which shows liabilities by period.
Step 6: Determine If You Dispute the Debt
Review the tax years and amounts listed to confirm they are correct. Determine whether you filed a return for those years and whether the amount is accurate. If you believe the debt is incorrect, note the specific reason (amount, year, type of tax, or other issue).
Determine whether you have documentation (filed returns, payment receipts, correspondence) that supports your position. Remember that you have 21 days after
receiving the Notice of Intent to Levy to contest it in circuit court or through administrative proceedings. Do not wait to address a dispute.
Step 7: Ask About Payment Plans and Hardship Relief
Explain your current financial situation to the Department of Revenue representative.
Ask whether the state offers any relief programs, payment plans, or hardship provisions for taxpayers facing freezes or levies.
The Department's typical payment plan terms require a 25% down payment, with the remaining balance paid over 11 months or less. More extended payment periods or balloon payments may be considered, provided supporting financial documentation is submitted.
Inquire whether funds can be released if you enter into a payment agreement. Consider an installment agreement option if the debt is substantial. Get the name and contact information of the representative handling your case.
Step 8: File Missing Returns Immediately
If the Department indicates that returns are missing for specific periods, file them immediately. Unfiled returns will prevent the Department from considering a payment plan proposal. Unfiled returns would also void any payment agreement that is reached.
Taxpayers enrolled to file and pay electronically should submit missing returns and payments electronically. Others can enroll online using the Department's eServices
Enrollment application.
Step 9: Provide Financial Information if Requesting a Payment Plan
The Department may provide Form ZT20 (Request for Financial Information). This will identify the federal returns to be provided (usually the last two years' filed returns), the
previous six months' bank statements, financial statements (income statements and balance sheets), and a proposed payment plan to resolve the liability.
Your proposed payment plan should include the amount of the down payment, the monthly payment amounts and duration, and what day of the month payments will be due. Please note that there is no guarantee of a payment plan. The Department can accept or decline a payment plan at its discretion.
- Not contacting the bank immediately: Many people do not realize a freeze has
- Assuming the freeze is an error without verification: Confirm with both your bank
- Ignoring the debt after the freeze: A bank freeze is not the end of the process.
- Not disputing the debt if you believe it is wrong: If you think the amount or tax
- Sending payments without confirming the correct recipient details: Always verify
- Failing to get payment agreements in writing: Verbal agreements with state
- Not keeping detailed records: Save all correspondence, payment receipts, and
- State enforcement notices and responses
- Sales tax audits, assessments, and collections
- Payroll & trust fund tax enforcement issues
- Penalty and interest reduction options
- Payment plans and state tax relief eligibility
- Representation before state tax agencies
Step 10: Execute the Agreement and Release the Freeze
Once terms are agreed upon, the down payment must be made to the Department. If funds are in the frozen account, the Department prepares an Authorization to Release.
You sign it, instructing the bank to send a certain amount from the account directly to the Department. The Department signs the release to authorize the bank to release your account with the issuance of the identified funds.
If the funds are not in the account, the amount must be paid over the phone via credit card (with a convenience fee) or by money order or cashier's check. The release is sent to the bank's legal department, which should process it within hours, allowing you access to the account again.
Common Mistakes to Avoid occurred until they try to use their account. Contact your bank right away to confirm the freeze and understand what happened. and the Department of Revenue that the freeze is real before deciding it is wrong.
The levy will occur during the last 30 days of the 60-day freeze period if the debt remains unresolved. year is incorrect, contact the state immediately and file your contest within 21 days of receiving the Notice of Intent to Levy. the recipient's payment address and account information before sending money. representatives are hard to prove. Always request written confirmation of any plan or arrangement. notes from conversations with the state and your bank.
What Happens After This Is Completed
After you have contacted the Department of Revenue and provided information about the freeze, the state typically reviews your situation and responds with the next steps. If a dispute has been filed, the state usually sends a written notice explaining its determination.
If a payment plan has been agreed upon, the state sends written confirmation of the terms and payment instructions. If additional funds remain owed after a partial levy or payment, the state may attempt further collection action unless a payment arrangement is in place.
The Department of Revenue usually sends written documentation of its actions and any agreements by mail or email. You can expect to receive correspondence confirming the resolution that has been reached.
Frequently Asked Questions
How much can the state take in a bank levy?
The amount taken depends on the size of the debt and the balance in your account.
The freeze typically applies to whatever funds are in the account on the day the freeze notice is received by the bank. The subsequent levy (which occurs during the last 30 days of the 60-day freeze period) can take up to the full amount owed. The state cannot take more than what is owed, but if multiple accounts are frozen, each may be frozen separately, potentially exceeding the total debt.
Can I get the frozen money back before the levy is applied?
Yes, during the freeze period (before the levy is executed), you can negotiate with the
Department to release the freeze by entering into a payment plan, paying the debt in full, or disputing the debt successfully. Once the levy is executed and funds are transferred to the state, recovery becomes significantly more challenging.
Does a bank levy affect my credit report?
A bank levy itself does not directly appear on your credit report. However, the underlying unpaid tax debt may be reported to credit reporting agencies through tax warrants or liens, which can affect your credit.
Can the state freeze my account again?
Yes, if a debt remains unpaid after a freeze or levy, the state can attempt additional freezes and levies on the same account (if it is replenished) or other accounts. Setting up a payment plan or paying the balance helps prevent additional enforcement actions.
What if I share a bank account with someone else?
The state's authority to levy a joint account is complex. If your name is on the account and the debt is yours, the state can typically freeze and levy it. If the other account holder is not liable for the debt, contact the Department of Revenue to discuss the situation and provide documentation.
Can I be criminally charged for owing back taxes?
Bank levies and other civil collection actions do not automatically lead to criminal charges. Tax collection is handled as a civil matter. However, specific actions (such as intentional fraud or evasion) may trigger a criminal investigation.
How long does it take to resolve a bank freeze after I contact the state's financial regulator?
The timeline depends on the situation and what action is taken. If you set up a payment plan and provide all required documentation promptly, processing typically takes several days to a few weeks. If you dispute the debt, the state's review process timeframe varies. The Department is often short-staffed during peak collection periods, resulting in response times that can range from same-day to several days.
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